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Development Workgroup 0282

Development Workgroup 0282. Action 018 – impact on RbD 13 September 2010. Action 0282/018 . “xoserve RbD expert to consider the proposal impacts and provide a view/attend the next meeting” This action refers to treatment of SSP vacant sites in the RbD calculations. What is RbD?.

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Development Workgroup 0282

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  1. Development Workgroup 0282 Action 018 – impact on RbD 13 September 2010

  2. Action 0282/018 • “xoserve RbD expert to consider the proposal impacts and provide a view/attend the next meeting” • This action refers to treatment of SSP vacant sites in the RbD calculations

  3. What is RbD? • Reconciliation by Difference is the substitute for meter point reconciliation in the SSP market • SSPs receive energy allocation and commodity charges via NDM Daily Allocation process • Individual meter readings are not used to reconcile SSPs • Within each LDZ, every LSP rec has an equal and opposite entry in RbD – both energy and commodity charges • RbD charges are apportioned on basis of live (not isolated) SSP AQ • Monthly RbD values are dependent on the number and value of LSP Recs in the month • RbD energy is usually a small fraction of commodity allocation

  4. Comparison to other existing/future scenarios Capacity Energy Commodity RbD Allocation Allocation Smear • Isolated & Withdrawn sites    • Isolated sites √    • DWG 0270 – Elective Meter Point Rec for SSPs • Proposed treatment √ √ √ √ • DWG 0282 – Vacant sites • Suggested treatment √   √

  5. Financial Impacts of RbD • For the 12 months to July 2010, RbD represented 2.2% of total SSP Allocation • % varies between months depending on levels of reconciliation and allocation and financial adjustments

  6. Assessment of Suggested Treatment • No precedent for sites being subject to RbD but not allocation • No parallel with DWG 270 Elective Meter Point Rec proposal • Those sites remain in Allocation • Retaining those sites in RbD shares the unaccounted for gas across all active SSPs • Leaving those sites in RbD should be a simpler change • Leaving Vacant sites in RbD is not consistent with similar scenarios, e.g. Isolations • Risk of erroneous isolation is borne by remainder of SSP market • No reduction in complexity of change

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